Pulte tops estimates, says the average home price jumped 10.7%

(Reuters) - PulteGroup Inc, the No. 3 U.S. homebuilder, reported a higher-than-expected quarterly profit, driven by an increase in home sales and average selling prices.

Pulte's shares were up 2.7 percent at $21 before the bell on Thursday.

Continued favorable trends in the economy, job growth, demographics and consumer confidence can more than offset the impact of modestly higher rates, allowing the housing recovery to continue at a steady pace, the company said.

A report showed on Tuesday that U.S. home resales fell more than expected in December as the supply of houses on the market dropped to levels last seen in 1999, but the recovery remained intact against the backdrop of a tightening labor market.